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I do hereby declare that the summer internship program with the report entitled A Study on Performance Appraisal System at IKIWL submitted by me to the Academy of Management Studies, Prasanti Vihar,Pubasasan, Kousalya Ganga, Bhubaneswar is of my own. This project report is a result of my original work and not any project report similar to this one ever been submitted to any of the prepared for the partial fulfillment of the Master in Business Administration (MBA) program (2009-2011), under BPUT. part of the said report has been copied or duplicated nor has any universities or any other organizations. This report has been
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Sudeep Chhotaray Regd. No.-0906272065 MBA (4th Trimester) AMS, BBSR
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Academy of Management Studies, Bhubaneswar
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ACKNOLEDGEMENT
I feel very happy to take the opportunity to extend my heartily thanks to Managing Director, IDCOL Kalinga Iron Works Limited and Personnel Management, IKIWL for allowing me to conduct my studies over the concern. I am also thankful to all the executives of Personnel and other operation, advise and suggestion and those who contribute to complete this research project paper in time. I extend my heartily thanks to Mrs. SnehaLata Baliarsingh, Dy. Manager Personnel for her timely guidance to prepare this research project paper.
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Sudeep Chhotaray
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CONTENTS
CHAPTER 1
INTRODUCTION OF THE STUDY IMPORTANCE OBJECTIVE OF THE STUDY METHODOLOGY
CHAPTER 2
INTRODUCTION TO THE INDUSTRY
CHAPTER 3
CHAPTER 4
CHAPTER 5
DATA ANALYSIS INTERPRETATIONS AND FINDINGS SUGGESTIONS
CHAPTER 6
CONCLUSION ANNEXTURE & BIBILOGRAPHY
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METHODS OF APPRAISAL
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COMPANY PROFILE
CHAPTER I
1.1 Introduction 1.2 Importance 1.3 Objective
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1.1
INTRODUCTION
HRM is a new concept to in management the section, literature, which dealt which with terms what 1970s. Early different in
came into use in early may not have significant do they stand is for?
as personnel
department. Both
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is a and are defined designed
and organization together so that the goals effectively and efficiently. If wonderful things can be happen. According human and functions to Carnell, Kuzonils management activities goals. and
...
people. process of each
Management
the process
of efficiently
achieving
the objectives
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According to Flippo IT is the planning organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and reproduction of human resources to the end that individual, societal and organizational goals are accomplished.
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organizational
resource
knowledge, skill, creativeness, talents, attitudes as well as values and of goals, human resources has to be acquired, treated and utilized to facilitate
practices
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acquiring of the and security. is: talent challenging commitment opportunities living. of
in a particular
Importance
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Attract
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of HRM and retain spirit and profile
satisfaction
and competition
...
right
people, maintaining,
Resource of
management are
could
be and
said to where
be to
kind
people
required
Modern human resource management is quite different from that of decades ago. At the beginning of the 19th century both scientific and human relations approach appeared. However, today what has gained more popularity as human resource approach, which is based on scientific techniques, has come to stay.
1.3 SCOPE:
1. Human resource determines the number and kinds of personnel 2. Recruitment, selection and placement of personnel, i.e. employment function. 3. Training and development of employees for their efficient performance and growth. 4. Review and audit of personnel policies producer and practices of organization.
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1.4 OBJECTIVES:
performance appraisal in Kalinga Iron Works and to search out its 2. Besides, the purpose of the study is to fulfill the partial requirement.
Research is also a Scientific and systematic search for pertinent information on a specific topic. Clifford Woolly defined, research comprises of defining and redefining problem, formulating by procurer suggested calculation, collecting organising, evaluating data making deduction and reaching conclusion.
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impact.
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1. Analysis of Performance Appraisal system, which exists for actual practice at IKIWL: Special session was conducted for us by Employee Development Center in which we were told why and how IKIWL conducts performance appraisal. (As KIW is a subsidiary of Industrial Development Corporation of Orissa Ltd. (IDCOL) its rules and guidelines were set by IDC itself.) 2. Literature Survey: All the original files which contain the existing rules for performance appraisal was provided for literary survey in which all the aspects were been covered which is required to conduct appraisal program successfully. 3. On spot survey for data collection to obtain actual feedback: a) b) Questionnaires were made of 10 questions for data collection. Interviews were conducted to get actual feedback.
Total permanent employee at IKIWL is around 1000, out of which 10% of the total populations were interviewed and questionnaires were given.
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Supervisors
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CHAPTER II
2.1 Introduction to Industry 2.2 Company Profile
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HISTORY AND DEVELOPMENT OF IKIWL: After independence there is a realization of the need for a planned development of Steel, Iron & other Industries to increase Export capacity in Iron product to foreign countries. It was realized by both State Govt. & Central Govt. for the advancement of Iron Industries. The IDCOL, Industrial Development Corporation of Orissa Ltd., Reflects Orissas determination to accelerate industrial growth sponsored March1962. by the Govt. of Orissa & registered as a Public Limited Company in
magnificent success as entrepreneur & promoter has let to emergence of a huge number of Industrial units in the private sectors.
Development Corporation was established in 1950 & was known as Kalinga Industries Limited and the foundation stone was laid by out former Chief Minister of Orissa Mr. Biju Pattnaik on 3rd January 1959. The total investment in beginning of such organization was Rs.176 lakhs. The IDCOL was incorporated in the year 1962 as a Govt. Company to promote heavy & medium scale industries with in the state of Orissa. Its first step was to take over the Engineering Workshop from Hirakud Dam project during November1962. This was followed by taking over low shaft furnace of Kalinga Industries in the year 1963. After that Kalinga Iron Works is directly managed by IDICOL under the Company Act.1956. Academy of Management Studies, Bhubaneswar
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GEOPGRAPHICAL LOCATION: IDCOL Kalinga Iron Works Limited is situated in the midst of the richest Iron Ore deposit of the country in Keonjhar District of Orissa within Municipal area of Barbil town. On 01.04.1963 IDC took over IKIWL from Kalinga Industries. There are two divisions in IKIWL i.e. (a) Spun Pipe Division (b) Pig Iron Division. (a) Spun Pipe Division: The Spun Pipe Plant was set up adjacent to the premises of IKIWL annum. The Unit was gone into commercial production of C.I. Spun Pipe in the year 1982 & in 15.04.1983 the company has got the DGS&D rate contract & in the year 01.04.1990.
The Spun Pipe Division has incorporated in March1982. It has licensed capacity of 31,200 MT per year. There are five Spinning Machines capable of producing C.I. Pipes of size 80 to 400 mm nominal diameters as per ISI1536/1979 & amended thereof . The Division obtained quality raw material (Pig Iron) from Pig Iron Division & convert the same into pipe after necessary composition. The total licensed capacity is 31,200 MT. The total capital investment is Rs.737.70 lakhs.
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with installed capacity 36,000 MT of both Cast Iron & Ductile Iron Pipe per
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INDUSTRY SNAPHOT 1. CAPITAL INVESTMENT UPTO 31.03.04 2. COMMISSIONING OF THE PLANT 3. LICENSED CAPACITY 4. No. OF SPINNING MACHINE 5. No. OF INDUCTION FURNACE 6. Continues Annealing Furnace. 7. Hydraulic Testing Machine 8. Tar Dipping Mechanism. 10. Well equipped Lab. 9. Loading bays for Stock yard. :Rs.729.95 Lakhs : March.1982 : 31,200 MT : 5 Nos. : 4(Four) Nos.
(Product range 80 mm to 400 mm as Per ISI 1536/1979) (3 of them having 3.5 MT Capacity each & one having 18 MT capacities)
The Division obtains molten metal (Foundry Grade from PID and converts the same into Pies after necessary composition correction using Induction Furnaces. The method of manufacturing consists of pouring molten metal into a revolving water-cooled steel mould. Centrifugal force holds the metal in contract with the mould during solidification and a Pipe is quickly formed. Casting is followed heal treatment in an oil fired furnace, after which the Pipes pass through the various finishing operations which include inspection, hydrostatic testing, cleaning and between coating.
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Manufacturing & sale of C.I. Spun Pipes are done as per BIS Specification. The documented Quality Management Systems has been established and maintained in accordance with the requirement of International Standard ISO9001:2000 to continue the Improvement of effectiveness. The Quality Control Department is headed by an executive in the rank of Dy. General Manager. Top management satisfaction These ensure that customer requirements are determined and are met to enhance customer process are reviewed by the top management periodically to identify needs & expectation of customer and to translate them to requirement. The customer feedback are obtained in defined interval through customer and analyzed for improving performance of the Organization.
Quality Policy: At IDCOL Kalinga Iron Works Limited, we look forward to achieve customer satisfaction by manufacturing & sale of Pig Iron & Spun Pipes as per customers requirement. WE are aiming at limiting off grade/non-confirming product and achieving production efficiency by reducing input cost & producing as per budgeted target We are committed to achieve customers satisfaction by timely delivery. Employees are the strength of this Organization; we shall try to improve upon meeting customers requirement by active involvement of our employees through training. WE shall periodically reviews sour achievement against objectives and Quality Policy continuing suitability
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customers
report/suggestions
and
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direct
communication
with
the
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Internal Audit: The internal audits are planned and conducted at least once every 6 months to determine whether quality management system:(a) Conforms to planned arrangement, to the requirement of
international Standard ISO 9001:2000 and to the Quality Management System requirement established by the Organization and (b) Is implemented and maintained effectively.
Follow-up activities are carried out by auditor to verify that actions are
measurement of characteristic of the product is carried out to verify that requirements have been met at different stages of product realization conformity with the acceptance criteria kalong with authorization of release of products are maintained, Products are not released for delivery or further processing until the panned arrangements are satisfactorily completed, unless otherwise approved by the Managing Pattern & where applicable by customers representative. such as incoming in process and final stage. Records, evidencing
RAW MATERIAL i) Molten Iron/Pig Iron ii) Ferro-Silicon iii) Furnace Oil iv) Petroleum cake
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ABOUT COMPETITORS: There are around 20 Spun Pipe Divisions in India now and the prime competitors are: 1. Electro Steel Casting, Bokaro. 2. Tata Metaliks, 3. Jindal, Gujrat. 4. Jai Balaji Spun Pipe, Durgapur. 5. Indocto Theme, Gujrat. 6. Lanco (ECL), Tirupati. 7. Electro Steel Casting, W.B. MAIN CONSUMER OF C.I.PIPES 1. Public Health Eng. Dept.
2. Sanitary Bodies in Charge ph Rural & Urban Development. 4. Industrial & other housing projects. SPECIAL FEATURES OF THE PALNT & EXPANSION PROGRAMME: 1. Project report on ductile Iron pipe production already submitted. 2. To produce pipe up to 750 mm Nominal Bore. HOURS OF WORK & SHIFT TIMING: Each worker of SPD & PID has to work for a period of at least 8 hours, half an hour rest in a day. The working hours for workers engaged in field side are divided into three shifts A.B.C. & for the official staffs; the working shift is called General Shift. It starts from 7am to 12 noon and rest of 2 hours & then 2 pm to 5 pm. Academy of Management Studies, Bhubaneswar
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SHIFT A B C NUMBER OF EMPLOYEES: i) Regular Employee ii) Contract Labor iii) Job contract Labor
230 122 21
industries & forms the backbone of the Engineering Sector in the country. Today, our country has 6000 or more foundries with an installed production is below 3 million tons annually 90% production capacity of over 4 million tons per annum where as the actual
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the SSI sector employing more or less 6 lakhs worker. PIG IRON is the basic input of the foundry Industry. In the beginning the only source of supply of pig Iron as the countrys integrated steel plants likes SAIL. This leads to the scarcity of quality grade pig iron to the Industry. No attention was also paid to improve the quality of Pig Iron due to this draw back may Pvt. Sectors come to picture & leads to tremendous increase in the production of Pig Iron. Today 30 Pvt. Sector Plants are producing different grades of Pig Iron. Some 5 years ago the Govt. had announced that the public sector steel plants will gradually gives up the production of Pig Iron & entire requirement are meet by our sector. So as to help the Pvt. Sector this is however not happen. The IISCO continued to be the main producer of Pig Iron. Academy of Management Studies, Bhubaneswar
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The unit (IKIWL) with a installed capacity of 1, 00,000 metric tons per annum produces superior foundry grade Pig Iron as per India standard specification. In addition to the normal grades, Grade IV to Grade I the unit also produced special grade Pig Iron with silicon contains about 3.25% with eliminates the use of Ferro silicon while making casting & there by reducing the cast sulpher contents is properly controlled & kept well below0.05% which eliminates the possibility of mental becoming sluggish. INDUSTRY SNAPHOT: 1. Capital investment up to 31.03.2007 - Rs.9897.82 lakhs I. II. III. IV. Furnace No.1-
3. License Capacity 1, 80, 000 MT Foundry Grade Pig Iron 4. No. of Low Shaft furnace existing:
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availability.
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5. Product - Foundry grade Pig Iron as per IS 224-1979. RAW MATERIAL: I. II. III. IV. V. Hard coke from own conversion. Imported coke from China. Other indigenous coke from steel plant & private supplier as per Limestone & D0lomite procured from Rourkela area. Manganese Ore from captive mines.
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01.09.1969 01.02.1971 29.09.1991
05.10.1999(After Modernization)
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4 (Four)
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MAIN CONSUMERS: The demand of the foundry Industry are mainly done by 1. Defense Purpose 2. Spun Pipe Production 3. Export Purpose 4. Steel Plant Production 5. Railways and P & T 6. Construction & Sanitary Purpose 7. Automobiles Production Research and Development (works taken up): 8. Eng. Sectors, Govt. Dept. etc.
i) Trial production of Chromites overburden sinter for production of alloys Pig Iron taken up by M/s MECON Rourkela & Bhubaneswar. ii) Coke and Iron Ore briquette project has already been taken up by
Expansion and Modernization Program: Since the liberalization of Indian economy from 1991 a number of Pig Iron companies have been commissioned in India which is equipped with mini Blast furnaces of higher sizes and as a result competition in the domestic market has significantly due to increased. The competitions in import has duties further under aggravated substantial reduction
liberalization program resulting in availability of materials of international standard in Indian market at cheaper price. Today it is difficult for any Pig Iron producer to survive unless the cost of production is brought down by a significant extent and/ or value addition to the product-mix is taken up.
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Considering the above, IKIWL has already assigned MECON during Apri08 to prepare Prospective Plan Report (PPR) to tide over the above problems. Accordingly MECON has submitted the PPR where in they have suggested modernizing the plant in two phases i.e. Phase I Installation of new Blast Furnace of 350 m3 capacity in place of Blast Furnace No. - IV to match with new PCM facilities. In phase II it has been envisaged to convert the entire basic grade hot metal from new 350 m3 Blast Furnace in to steel by installation of new auxiliary facilities. Besides the existing, CISP shop will be augmented for installation of new Centrifugal Casting Machine DISP production equipments. Work Force with a capacity of 1.00 lakhs MT per year or more by
The activity of Pig Iron Division is expanded. Its Work force is also changes proportionately according to the need the requirement of the job.
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i) ii) Contract Labor Job iii)
Regular Employ
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893 358 569
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SL. NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
GRAND
JOB DESIGNATION
A B C E E1 E2 E3 E4 E5 E6 WA WB WC
P.A., Foremen, Sr. Chemist, Jr. Officer 94 Security Inspector, Head Typist Sr. Asst., Sr. Supervisor Personal Secretary, Asst. Manger Dy. Manager, Medical Officer Sr. Dy. Manger 12 5 77 22 6 8 8 3 1
Sr. Manager
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General Manager All Skilled Workers
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Clerk-cum-Typist, Time Keeper All Skilled Workers Grade II All Skilled Workers Grade III
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64 50
106 40 13 9
3 2 1 1 2 26
WD WE
133 46
TOTAL
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3.3 Advantages 3.4 Limitations 3.5 Methods of Appraisal
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CHAPTER III
The effectiveness of staffing functions needs to be ascertained by evaluation the performance of employees in terms of the job requirement. Performance appraisal or employee appraisal is the systematic process of measuring and evaluating employees with respect to their performance on the job and their potential for development. Although performance appraisal if often described as merit rating, strictly speaking, rating is only one form of personnel evaluation. Performance appraisal is a more observations, records and evaluation (Dale Yeder). comprehensive process which combines formal rating with supplementary
and progress of an employee or of a group of employees on a given job and his potential for future development.
According to FLIPPO performance appraisal is the systematic, periodic and an impartial rating of an employees excellence in matters pertaining to his present job and his potential for a better job
qualifications of the employees in terms of the requirement of the job for which he is employed, for purpose of administration including placement, selection for promotions, providing financial rewards and other actions which require differential treatment among the members of a group as distinguished from actions affecting all members equally.
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3.2 IMPORTANCE AND PURPOSE OF PERFORMANCE APPRAISAL Performance appraisal has been considered as a most significant and indispensible tool for an organization, for the information it provides is highly useful in making decisions regarding various personal aspects such as promotions and merit increases. Performance measures also link information gathering and decision making processes which provides a basis for judging the effectiveness of personnel sub-divisions such as recruiting, selection, training and compensation. Below are given views of some experts which will bring out the importance and purpose of PA. According to Barret, PA is concerned mainly with three things. i. Administrative decisions i.e. promotion, transfer and allocation of financial
Mc Gregor says: Formal performance appraisal plans are designed to meet three needs, one of the organization and the other two of the individual, namely i. This provides systematic judgment to back up salary increases, transfer, demotion or termination. ii. They are means of telling a subordinate how he is doing and suggesting changes needed in his behavior, attitude, skills or work knowledge. They let him know where he stands with the boss. iii. They are used as a base for coaching and counseling the individual by the superior.
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rewards.
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opportunities for growth and development of employees by focusing in discovering needs of training to employees. iii. Wages and Salary Adjustment: It is also used by certain
provides
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iv. Evaluation of Supervisor & Manager: Performance appraisal also valuable yardstick to measure the effectiveness of supervisors and managers in developing the team members who work under their direction. In addition to the above, performance appraisal make available the relevant information to management for purposes of employee transfer, promotions, counseling, determination of training needs, human recourse planning etc. so that they should be able to frame suitable personnel policies to optimally utilize human and other recourses and achieve organizational goals.
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ii. Employee
development:
It
is
used
to
highlight
needs
and
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i. Performance appraisal is a record of opinion and personal judgment. ii. It cant be the last word for an employee as there is always a zone of uncertainty in the system. iii. It doesnt give comprehensive picture of employee performance. iv. Its effectiveness depends upon the rates expertise and ability.
4. Similarity Error
5. Miscellaneous Biases
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measurement of the performance of an employee. The methods and scales differ for obvious reasons. First, they differ in the source of traits or qualities to be appraised. The qualities may differ because of differences in job requirements, statistical requirements and the opinions of the management. Second, they differ because of the different kinds of workers who are being rated, viz., factory workers, executives or salesmen. Third, the variations may be caused by the degree of precision attempted in an weightings for various traits. evaluation. Finally, they may differ because of the methods used to obtain
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In case of critical incident method supervisor keeps log of particularly good & poor examples of work behaviors. A panel of judges evaluates the the latters performance, using incidents as examples. collection of potential critical incidents. Supervisor & subordinate discuss
3. Checklist:
In checklist method evaluator uses a list of behavioral descriptions & checks off those that apply to employee or gives Yes/No responses. Checklist scored according to the weights assigned. The final rating of the employee is taken as the average of the scale values of all statements that the rater has checked.
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5. Graphic Rating:
The appraise lists a number of traits and a range of performance values for score that best describes the subordinates performance for each trait.
BARS method combines the benefits of narrative critical incidents & quantitative ratings by anchoring a quantified scale with specific narrative examples of good & poor performance. Five Steps of developing BARS 1. Generate critical incidents 2. Develop performance dimensions 3. Reallocate incidents 4. Scale the incidents 5. Develop a final instrument
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Then the total is calculated with the assigned values for the traits.
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each trait. The rater or supervisor rates each subordinate by checking the
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7. Ranking Method:
This is simplest of all methods. The appraisal consists of ranking employees as more or less efficient by inter-personal comparison of overall qualities. This method is conveniently adopted if the number of employees is small and work performance is measurable. Thus ranking involves subjective appraisal of employees without any common standard.
8. Paired Comparison:
In paired comparison method each employee is compared with every
weaker (-) member of the pair. Each employee is assigned a summary
In MBO the manager requires to set specific measurable goals with each employee and then periodically discuss progress toward these goals. Six Steps: 1. 2. 3. 4. 5. 6.
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Provide feedback
Set departmental goals Discuss departmental goals Define expected results Conduct performance reviews & measure results
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other employee in the comparison group and rated as either the superior (+) or
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developing) are
compared
to
the
department goes into the field and assists line supervisors with their ratings of their respective subordinates. Here ratings done on standardized information about the employees performance. Then experts prepare report, which is sent to supervisor for review, changes, approval & discussion with ratee. forms. HR specialist requests from the immediate supervisor specific
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To what extent they have achieved their objectives. In what respect their work has been most successful. Are there any aspects of their work, which they have not completed?
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Are many other question, which make them assess rightly Guidelines for effective performance evaluation interviews...
emphasize positive aspects of employee performance tell employee that the purpose is to improve performance, not to discipline
conduct the review in private review the performance formally at least annually (more
performance appraisal has been put together by The Corporation, the researcher has provided an overview of the companys performance appraisal process. The researcher felt that the overview of the performance appraisal process would be necessary, since the process provided a framework for the performance appraisal.
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emphasize the evaluators willingness to assist the employees efforts to improve performance end by stressing positive
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PRE-APPRASIAL STEPS The performance evaluation can be made for variety of reasons counseling, promotions, salary increases, administration or combination of these. It becomes very necessary to begin by stating the objectives of evaluation programs very clearly and precisely. The personal appraisal system should address the question who, what, how of performance appraisal.
WHO OF THE APPRAISAL OR WHO IS TO RATE. The immediate superior, the head of the department or any other can rate the performance of an individual. In addition to this, appraisal by peers. A group, consisting of his senior, peers and subordinates, can do appraisal, whoever is rating; he should be trained and impartial. In most of the organizations the ratings is done by his immediate superior who is considered the best person to understand his subordinates strengths and weaknesses. Now a day some organizations are following the method of self-appraisal. sum organizations follow the system of self-appraisal and /or
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THE WHATOF APPRAISAL It is considered with Creating and maintaining a satisfactory level of performance of employees in their present job. Highlighting employees needs and opportunities of for personal growth and development. Aiding in decision making for promotions, transfers, layoff and discharges. Promoting understanding
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between
supervisors
and
his
Providing a useful criterion for determining the validity of caliber to the organization.
THE WHEN OF APPRAISAL The when answers the query the frequency of appraisal? The informal counseling should occur continuously but the manager should discuss an employees work as soon as he gets an opportunity to provide positive reinforcement and use poor work as basis of training. The time and period of appraisal differs according to the need and nature of the organization.
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THE WHERE OF APPRAISAL The where indicates the location where employee should be evaluated? supervisor. THE HOW OF APPRAISAL Under this, the organization must decide what different kinds of methods are available and which of these may be used for performance appraisal. On the basis of comparative advantages and needs of an organization; the method of appraisal is decided. The performance appraisal process at the companies has been stated by The Corporation as consisting of four inter-related steps. manager (evaluator) The first step was to establish a common understanding between the disadvantages, the nature and philosophy of management and the It is usually done at work place or office of the
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employee and the
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(evaluate)
regarding
work
expectations; mainly, the work to be accomplished and how that work was to be evaluated. The second step was an ongoing assessment progress against work expectation. Provisions were made for the regular feedback of information to clarify and modify the goals and expectations, to correct unacceptable performance before it was too late, and to reward superior performance with proper praise and recognition. Step three was the formal documentation of performance through the completion of a performance and development appraisal form appropriate to the job family.
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The final step being the formal performance and development appraisal discussion, based on the completed appraisal form and ending in the construction of a Development Plan. Also noted was that The Corporation considered the performance appraisal process to have been within the larger content of the other performance related processes of work planning and salary action. Reasons for Performance Appraisal Failures Where performance appraisal fails to work as well as it should, major contributing reason. Opposition may be based on political effectiveness of the appraisal process.
It is crucial that top management believe in the value of appraisal and express their visible commitment to it. Top managers are powerful role models for other managers and employees.
reform an existing system, must be acutely aware of the importance of political issues and symbolism in the success of such projects. Employee Participation Employees should participate with their supervisors in the creation of their own performance goals and development plans. Mutual agreement is a key to success. A plan wherein the employee feels some degree of ownership is more likely to be accepted than one that is imposed. This does not mean that employees do not desire guidance from their supervisor; indeed they very much do.
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motives,
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on ignorance or
lack of support from the top levels of management is often cited as a disbelief in the
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performance appraisal is to perceive appraisal as an isolated event rather than an ongoing process. Employees generally require more feedback, and more
frequently, than can be provided in an annual appraisal. While it may not be necessary to conduct full appraisal sessions more than once or twice a year, performance management should be viewed as an ongoing process.
Frequent mini-appraisals and feedback sessions will help ensure encouragement they need. Of course many supervisors complain they don't have the time to provide this sort of ongoing feedback. This is hardly likely. What supervisors really mean when they say this is that the supervision and development of subordinates is not as high a priority as certain other tasks.
and values that it has instilled in its supervisory ranks. After all, supervisors who haven't got time to monitor and facilitate the performance of their subordinates are like chefs who haven't got time to cook, or dentists who are too busy to look at teeth. It just doesn't make sense. If appraisal is viewed as an isolated event, it is only natural that supervisors will come to view their responsibilities in the same way. Just as worrying, employees may come to see their own effort and commitment levels as something that needs a bit of a polish up in the month or two preceding appraisals.
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that
employees
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ongoing
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support
and
PERFORMANCE APPRAISALS PURPOSE - AND HOW TO MAKE IT EASIER Performance management appraisals are essential for the effective
and evaluation of
individuals, improve organizational performance, and feed into business planning. Formal performance appraisals are generally conducted annually for all staff in the organization. Each staff member is appraised by their line manager. Directors are appraised by the CEO, who is appraised by the chairman or company owners, depending on the size and structure of the organization. Annual performance appraisals
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enable review also essential
monitoring of standards, agreeing expectations and objectives, and delegation of responsibilities and tasks. Staff performance appraisals training needs analysis and planning. also establish individual training needs and enable organizational
annual pay and grading reviews which also commonly coincides with the business planning for the next trading year. Performance appraisals generally each individual's
performance against objectives and standards for the trading year, agreed at the previous appraisal meeting. Performance appraisals are for career and
succession planning - for individuals, crucial jobs, and for the organization as a whole.
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Performance appraisals are important for staff motivation, attitude and behavior development, communicating and aligning individual and organizational aims, and fostering positive relationships between management and staff. Performance appraisals provide a formal, recorded, regular review of an individual's performance, and a plan for future development. Job performance appraisals - in whatever form they take - are therefore vital for managing the performance of people and organizations.
Managers and appraisee commonly dislike appraisals and try to consuming. The process is seen as a difficult administrative chore and emotionally challenging. The annual appraisal is maybe the only time since last year that the two people have sat down together for a meaningful one-to-one discussion. No wonder then that appraisals are stressful - which then defeats the whole purpose.
if the boss meets each of the team members individually and regularly for one-to-one discussion throughout the year.
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discussion
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about
work,
career,
aims,
progress, development, hopes and dreams, life, the universe, the TV, common interests, etc., whatever, makes appraisals so much easier because people then know and trust each other - which reduces all the stress and the uncertainty.
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Put off discussions and of course they loom very large. So don't wait for the annual appraisal to sit down and talk. The boss or appraise can instigate this. If you are an employee with a shy boss, then take the lead. If you are a boss who rarely sits down and talks with people - or whose people are not used to talking with their boss - then set about relaxing the atmosphere and improving relationships. Appraisals (and work) all tend to be easier when people communicate well and know each other.
actual formal appraisals are due everyone will find the whole process to be far more natural, quick, and easy - and a lot more productive too.
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So sit down together and talk as often as you can, and then when the
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CHAPTER IV
Performance Appraisal at IKIWL
4.2 Submission of Appraisal Forms 4.3 Procedure for Communication of Adverse Remarks
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1.
These rules may be called the appraisal rules for the employee of the Industrial Development Corporation of Orissa Ltd.
2.
Definitions: In these rules unless the content otherwise required. a) Corporation means the Industrial Development Corporation of Orissa Ltd.
Corporations grade of E and above or coming under the nomenclature of the said grade.
d) Employee other than Officer means an employee of the Corporation who is in Corporations grade A and below or coming under the nomenclature of the said grade.
e) Reporting Officer means the immediate superior officer under whose control or supervision an employee works and they have been specifically declared by the management to act as such.
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f) Reviewing Officer means all officers above the reporting officers and they have been specifically declared by the management to act as such. Note: No Reviewing Officer is required for the case in which managing director does the function of the Reporting Officer.
g) Co-Reviewing Officer means officers heading the respective functions at corporate office and has been specifically declared by the management to act as such.
any other authorized by the managing director to act on behalf of the Industrial Development Corporation of Orissa Ltd.
k) Financial Year means the period commencing from the first day of April of a calendar year and ending with 31st of March of the following calendar year.
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management to keep in custody the appraisal forms of the project or corporate office as the case may be.
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3.
A. The appraisal shall be maintained in the form prescribed by the management for different categories of employees from time to time. B. The appraisal form for a financial year, duly filled it shall be submitted by the reporting Officer to the Reviewing Officer before the 30th April of the next financial year. C. The Reviewing Officer after making necessary entries in the form shall be submitted to the Custodian before the 15th of May.
Manager / Unit Head, the Reviewing Officer shall be the Managing authorization shall be either for all or for some employees. E. An officer shall not fill up an appraisal form of an employee as Reporting Officer / Reviewing Officer unless the employee has worked under his control or supervision for a minimum period of 3 months during the year under report.
F. If an employee has not worked at least for a period of 3 months of the year under the control of supervision of the Reporting Officer / Reviewing Officer, then the officer under whose control or supervision he had worked previously for a period not less than 3 months of the year under report, should record his comments as Reporting Officer / Reviewing Officer. In case where an employee has worked under the control or supervision of different Reporting / Reviewing Officer for not less than 3 months of the year under report more than one report are to be maintained, in such cases each report shall include the period to which it pertains and in each report respective Reporting / Reviewing Officers Academy of Management Studies, Bhubaneswar
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should record their comments as Reporting / Reviewing Officer. When the above procedure cannot be followed by Reporting Officer due to some unavoidable reason, (such as sudden death or quitting the organization or remaining on leave long leave) the Reviewing Officer and the officer above him will act as Reviewing Officer. G. All major punishment defined under the discipline and appeal rules of the corporation or the certified standing orders of the units, as the case may be awarded to an employee concern. However, when an employee is warned / cautioned followed by a disciplinary proceeding, it should be open to the desertion of the disciplinary authority to order whether the same should be recorded in the appraisal report or not.
H. While recording the annual appraisal report during the period of suspension, pendency of disciplinary proceeding of an employee, the proceeding and progress of proceeding in the annual appraisal report of the employee reported open while forwarding their annual proceeding is disposed off, the facts should also be brought on record in the appraisal report. Those will help the management in knowing the employee career from year to year while assessing his merits for promotion. I. In following managerial functions the performance appraisal of respective departmental heads of the unit shall be reviewed at corporate office by the co-reviewing officer. 1. FINANCE, ACCOUNTS & COST 2. SALES & COMMERCIAL 3. PERSONNEL Academy of Management Studies, Bhubaneswar
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The custodian on receipt of the form from the Reviewing Officer shall send the same to the CO-reviewing Officer wherever necessary at corporate office immediately but not later than 20th May. J. Once the forms are submitted to the concerned authorities, it cant be taken back by the authority who submitted it. 4. PROCEDURE FOR COMMUNICATION OF ADVERSE REMARKS:
A.
same is to be made by the custodian. Adverse remarks entered in the employees concerned. So as to enable them to rectify the defects all such communication should be made to the employee by the custodian August every year. Competent for the purpose will be declared by the managing director from time to time. B. REMARKS WHICH ARE TO BE CONSIDERED AS ADVERSE REMARK: The question whether a particular remark is an adverse remark or not for the purpose of communication shall be decided by the competent authority. The custodian should put up the adverse remarks entered in the appraisal report of the concerned employee to the competent authority for decision. However, when the overall appraisal rating of an employee is C or D and in case of executive point 6 or below for a particular year as such rating does not entitled an employee to be considered promotion, the same should also be communicated to the appraise. So that he/ she will try to improve the performance in the succeeding year. with the approval of competent authority in close cover by the end of
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are over by the 15th of May every year at the latest, scripting of the
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C. REPRESENTATION: Representation against adverse remarks will not ordinarily be entertained as the very purpose of such communication is to enable an employee to know his failing to rectify them and the employee should profit bruit. The communication should not be taken as a matter of argument to enter into controversy in rare case, however, where the remark is based on fact and is obviously the result of a mistake on the part of the reporting officer; the management may consider the representation. D. TIME LIMIT FOR MAKING REPRESENTATION: Representation against adverse remark shall not be entertained if it is made after one month from the date of receipt of the communication of the adverse remarks.
E. PROCEDURE OF MAKING REPRESENTATION: While submitting representation against adverse remarks the employees should furnish representation in triplicate to the custodian, so as to forward one copy each to the Reporting Officer and Reviewing Officer for their comments. Such representation should be objective pointed and well reasoned.
F. PROCEDURE FOR HANDLING THE REPRESENTATION: Immediately after receipt of the representation, the custodian should obtain views of the Reporting / Reviewing officer. The Reporting / Reviewing Officer should furnish their views on such representation within one month from the date of receipt of the representation to the custodian who shall place the same before the appropriate authority to expose the adverse remarks. These formalities should be completed by the end of January every year at the latest. So difficulty will not arise to process the recording of appraisal reports for the succeeding year in due time. Orders Academy of Management Studies, Bhubaneswar
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of the competent authority to expose the adverse remarks or otherwise should be communicated to the employee concerned by the end of Feb. with copies to the Reporting/Reviewing Officer and expunction of adverse remarks should also be noted in the appraisal report. Competent authority to expose the adverse remarks will be declared by the managing director from time to time.
5.
WEIGHTAGE
ON
THE
REMARKS
OF
THE
REPORTING
REVIEWING OFFICER: A. In the system of performance appraisal the remarks of the Reviewing Officer shall prevail over the remarks of the Reporting Officer. B. Where there is more than one Reviewing Officer and there is divergent assessment, the remarks of Reviewing Officer holding the highest status shall prevail.
C. Where the adverse remarks recorded by the Reporting Officer have been completely counter balanced by the Reviewing Officer, the remark shall not be treated as adverse remarks. The Reviewing Officer, if he does not agree with the adverse remarks recorded by the Reporting Officer, shall be required to state categorically while recording his remarks for which these adverse remarks have not been accepted. In case of remark of general nature, recorded by the Reporting / reviewing Officer on the work and conduct of an employee reported upon, the employee concerned should profit by the such observation rather enter into arrangement and represent against such remarks.
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6.
A. The appraisal forms, except the appraisal form of the custodian and such other appraisal forms as may be specified, hereafter, shall be kept under lock and key under the strict control of the custodian of the unit / corporate office. B. The appraisal forms of the custodian in the case of the units shall be kept by the Executive Director/General Manager/Project Head/Unit Head or any other officer authorized in this behalf by the management and in case of corporate office by the managing director
C. The appraisal form of all the officers and employee of the grade A shall be preserved in the corporate office with the custodian. D. The reviewing officer shall have to see that the appraisal form is that it is made complete by the Reporting and Reviewing Officer.
7.
A. The forms received by the custodian shall be recorded in the register in prescribed forms. Some pages shall be earmarked for each department to be maintained separately for officers and employees. One page should be allotted for each officers or employee.
B. There should be one file in the form for a guard file for each officer or employee. The form received for each year shall be posted to the file chronologically.
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C. In the case of transfer of an employee, the appraisal guard file will be sent under confidential and sealed cover to the M.D./E.D./G.M./Project Head/Unit Head varying according to the place to which the officer or employee is transferred. Such transfer of appraisal guard files shall take place only after prior permission of the management. D. The appraisal form maintained in the guard file shall be issued only on production of a written requisition of an officer, bearing, where The sanctioning authorities are the M.D./G.M./Project Head/Unit Head necessary. The endorsement of the sanctioning authority to issue. in their respective units or an officer authorized in this regard. 8. A. Whenever any reporting officer/Reporting Officer is transferred, resigns, retires or suspended in the middle of year and whatever the employee under such Reporting/Reviewing Officer have worked the period required for Reporting/Reviewing, the Reporting/Reviewing organization or Project. B. Clearance and final payment to such officer will only be given after they have given their report in the appraisal form or review of the appraisal form as the case may be. Except when the service of such an officer is terminated or he is discharged or dismissed. 9. Disclosing the content of the appraisal form in any manner or handling the form in such a manner as may cause leakage of the entries will amount to serious misconduct. 10. With regard to the interpretation or implementation of these rules the decision of M.D. will be final. Officer in the prescribed appraisal form before leaving the
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11. If any doubt or difficulty arises in giving effect to the provisions of these rules, the M.D. may as occasion require, by order, do anything, not inconsistent with the provision of these rules, which appears to him necessary purpose of reviewing the doubt or difficulty. The Managing Director reserves the right either to amend these rules from time to time or to revolve the same at any time.
GUIDELINES
FOR
RECORDING
APPRAISAL
REPORT
BY
basic and vital inputs for assessing the performance of the employees and executives, and their further advancement in their career. The Reporting Authority and the Reviewing Authority should therefore, under take the duty of filling out the forms with a high sense of responsibility and objectivity.
The Annual Performance report is used as tool for (Human Resource Management). Reporting authority is to realize that the objective is to develop an employee. So the employee realizes his/her true responsibility. Since it is not a FRUIT FINDING PROCESS but a DEVELOPMENTAL one, the reporting authority as well as reviewing authority should not shy away from giving correct assessment without any bias. Therefore, the columns/factors/attributes in the appraisal reporting form should be filled with due care and attention devoting adequate time. IKIWL have three Types of Forms: I. II. III. Meant for Workers Meant for Clerical and Supervisory Staff Meant for Executives
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The form meant for workers and clerical/supervisory staffs are simple one, where as the form meant for executives has been designed to assess the performance and managerial potentiality while giving the executives the opportunity to record his/her self appraisal on the basis of specific achievements made by them during the year. Since the performance appraisal report meant for executives requires more care and diligence. The same has described in detail as follows: The form has three parts: Parts I Self appraisal to be recorded by appraise. Part II To be filled by Reporting Authority. Part III Has 17 factors/attributes.
For performance assessment, Part II is divided into two groups. I. II. Performance factors from ii to vi. Managerial Potential factors from vii to xiv.
Factor I is information regarding the duties assigned to the executive, factor xv is the comment on self appraisal recorded by appraise, and factor xvii is overall rating. Each factor has to be weighted in respect of its importance and overall assessment is to be decided at factor xvii. Factor iv to xii are to be assessed on a 6 point scale and the relevant scale point is to be tick marked. Factor xiii and xiv are in questionnaire form to be tick marked at appropriate column. Factor ii, iii, xv and xvi are to be written in narrative form.
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If there is any adverse remark or appreciation, care should to take to reflect the same under factor. Part III is meant for co-reporting (whenever specified). Part IV is meant for reviewing. Part V is Training need. Since factor from iv to xii are to be assessed on numerical point scale, xiii & xiv in questionnaire form and overall assessment is also on numerical point scale, it would be scientific and rational to develop a factors, so that factor score can be found out as follows and all the factor assessment. system of co-relation between the both, by assigning Weightage to these scale added together can decide the score to be assigned under overall
Factor Quality of Performance is assigned Weightage of 0.5 point scale tick marked is 6. The factor score thus become 6*0.5=3. All the factor scores can be added up to arrive at overall rating which is on a 20 point scale. The factors which are of relevant importance have been assigned higher Weightage and factor has less importance with lesser Weightage.
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We have the following factors on point scale/questionnaire and Weightage is suggested as follows: FACTORS 1. Quality of Performance 2. Cost/Time control in Performance 3. Job Knowledge and Skill 4. Planning and Organizing 5. Incentive 6. Commitment and Sense of Responsibility 7. Communication WEIGHTAGE 0.5 0.3 0.5 0.3 0.3
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0.2 0.3 0.3
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0.3
Factors xiii i.e. LATERAL CO-OPERATION is in form of questionnaire which is to be marked at appropriate column and this may be assigned marks as follows: ATTRIBUTES 1. Has a marked tendency to be unduly difficult with other Departments, regardless of overall Company Objective. 2. Reasonably co-operative. 3. Misses no opportunity to turn down other Departments. 4. Indifferent towards the needs and problems of other Departments. 5. Fully alive to Departments. his responsibility MARKS 0 0.5 0 0
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towards
other
Factor xiv i.e. SUBORDINATE DEVELOPMENT is also in the form of questionnaire which is to be tick marked at appropriate column and this may be assigned marks as follows:
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ATTRIBUTES
MARKS 0
1. Has an indifferent approach to the growth needs of subordinates. 2. Takes some Interest in subordinate development. 3. Thwarts the growth of subordinates. 4. Quite conscious of his responsibility to allow and encourage subordinate to grow.
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0.5 0 1
The total factor scores on above factors at highest point will come to 20. By the above exercise the overall rating can be found out at factor xvii where the point scale is 20. Academy of Management Studies, Bhubaneswar
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5.3 Suggestions
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CHAPTER V
DATA ANALYSIS
Question no 1: Number of service years in this organization. (a) 5-10 years Question Sample Size 87 Employees (b) 10-15 years Less than 5 Years 21 5-10 Years 38 (c) More than 15 years 10-15 years 17 More than 15 11
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10 - 15 Years
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Fig. 1.01
Findings: The response collected is based on the period of their service in the organization. As company was set up in 1950 so the years of service in the organization of most of the employees is more than 5 years. Which means most of the employees are well experienced.
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More than 15 Less than 5 Years 5 - 10 Years
Service Years
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Question no 2: Are you aware about your performance appraisal or any evaluation done by your superior? (a) Yes (b) No
Yes 78
No 9
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Fig. 1.02 Findings :- 85 % the employees had responded in favor of that they were aware about performance appraisal.
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Question no 3: Are you aware about the modern techniques used in performance appraisal?
(a) Yes
(b) No
Yes 68
No 19
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Fig. 1.03 Findings: Near about 30% of the employees had not aware about modern performance appraisal techniques. Academy of Management Studies, Bhubaneswar
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Question no 4: Performance appraisal techniques make you better eligible for promotion, demotion, & transfer.
(a) Agreed (
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Fig. 1.04 Findings: 80% of the respondents shows that Performance Appraisal work as a good strategy to go ahead with promotion while 20% of respondents do not agree with it.
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Question no 5: Do you think performance appraisal is useful or just a waste of time? (a) Useful Question Useful Sample Size Employees 87 82 Waste of time 5 ( ) (b) Waste of time ( )
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Fig. 1.05 Findings: More than 90% of the employees say that performance appraisal is useful for their self-assessment and promotions. Thus, they cannot ignore it. And rest of the employees thinks it as a waste of time.
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Question no 6: Proper and adequate performance appraisal plays a crucial role in your career development. (a) Agreed ( ) (b) Not Agreed ( )
Yes 92
No 8
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Fig. 1.06 Findings: More than 90% of the responses show that Performance Appraisal Report helps a lot in the promotional activities.
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Question no 7: Does performance appraisal report is helpful in identifying Training and Development need or it lay development plan for you? (a) To a large extent (b) To some extent (c) Not at all
To a extent 60
large
To some extent 30
Not at all 10
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Fig. 1.07 Findings: More than 65% of the respondents are satisfied by the performance appraisal report as it helps them to understand the job profile and helps in training need identification.
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Question no 8: Performance appraisal is most of the time fair and unbiased. (a) Agreed ( ) (b) Not Agreed ( )
Agreed 85
Not agreed 15
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Fig. 1.08 Findings: More than 65 % of the respondents show that Performance Appraisal report is time fair & unbiased.
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Question no 9: Have you understood clearly, as to what is expecting from you? (a) Yes (b) No (c) Cant say
YES 40
No 22
Cant say 38
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Fig. 1.09 Findings: There is a close response from the respondents Performance appraisal report where on one hand (near about 40%) that it makes feel refreshed & know there better responsibility. On other hand some say that it has helped them in improving their skills to define their future responsibility and performance. on say the not
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Question No 10: Does the organization provide counseling after appraisal? (a) Yes (b) No
Yes 71
No 16
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Fig. 1.10 Findings: Near about 80% of the respondents, say that Organization provides counseling after performance appraisal report.
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FINDINGS:
1. The response collected is based on the period of their service in the organization. As company was set up in 1950 so the years of service in the organization of most of the employees is more than 5 years, which means most of the employees are well experienced.
2. 85 % the employees had responded in favor of that they were aware about performance appraisal.
3. Near about 30% of the employees had not aware about modern performance appraisal techniques.
6. More than 90% of the responses show that Performance Appraisal Report helps a lot in the promotional activities.
7. More than 65% of the respondents are satisfied by the performance appraisal report as it helps them to understand the job profile and helps in training need identification.
8. More than 65 % of the respondents show that Performance Appraisal report is time fair & unbiased. Academy of Management Studies, Bhubaneswar
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5. More than 90% of the employees say that performance appraisal is useful for their self-assessment and promotions. Thus, they cannot ignore it. And rest of the employees thinks it as a waste of time.
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4. 80% of the respondents shows that Performance Appraisal work as a good strategy to go ahead with promotion while 20% of respondents do not agree with it.
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9. There is a close response from the respondents on Performance appraisal report where on one hand (near about 40%) say that it makes feel refreshed & know there better responsibility. On the other hand some say that it has helped them in improving their skills not to define their future responsibility and performance.
10. Near about 80% of the respondents, say that Organization provides counseling after performance appraisal report.
3. This shows there negligence towards their career & awareness. Thus, it can avoid by providing enough information to employee with the help of training & development exercise.
4. The 20% of respondents responses shows that they are not aware about importance of performance appraisal report. They should be aware about that how they can take promotion and greater responsibility through better performance.
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2. They should have to be aware about the performance appraisal techniques because they have to pass through it for taking better promotions & greater responsibility.
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1. This situation realizes that there were 20% of the employees who are unaware of the performance appraisal report which will be reduced by providing them counseling.
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SUGGESTIONS:
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CHAPTER VI
2.2 Annexure
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2.3 Bibliography
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2.1 Conclusion
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CONCLUSION:
It is truth that no work is completed in itself. In fact, completion of one job is actually the beginning of another job. Likewise, performance Appraisal is never ending process. It is essential for personal & professional development.
In spite of these merits, there are some demerits also in the company that the goals of the company are not decided in advance and no feedback fixed for workers and executives in IDCOL KALINGA IRON WORKS LTD.
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They believe in investing continuously in human resource for their growth. The company is led by young professionals. They have an open work environment which is achievement oriented.
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In the concluding remark of my project report, I would like to state that at IDCOL KALINGA IRON WORKS LTD., the employees are considered as most valuable assets & strength for sustained growth & development of the company.
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This project has been considering all possible aspects mentioned in the project booklet. The project is made very clear and precise with the help of the relevant data gathered from the company, company website & through various annexure.
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BIBLIOGRAPHY
Aswathappa K, Human Resource & Personnel Management, Tata McGraw- Hill Publishing Co. Ltd., New Delhi, Sixth edition 2001 Kothari C.R., Research methodology methods & techniques, Wishwa Prakasan ublishing Co. Ltd., New Delhi, Sixth edition 2001. Human Resources Management by P.Subarao Robinson Kenneth R., A Handbook of Training Management (Revised 2nd Edition), Aditya Books Private Ltd., New Delhi, 1992.
1. www.google.com 2. www.citehr.com
3. www.scribd.com
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SEARCH ENGINES
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Bajpai S. R., Methods of Social Survey and Research, Kitab Ghar, Kanpur, 2004.
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COPY OF QUESTIONNAIRES:
IDCOL KALINGA IRON WORKS LTD., KEUNJHAR Name:. Dsignation / Post:.. Salary Grade:. Qualification: Experience (In Years):
2. Do you aware about your performance appraisal or any evaluation done by your superior.
3. Are your aware about the modern techniques used in your performance appraisal? (a) Yes (b) No
4. Performance appraisal techniques make you better eligible for promotion, demotion, & transfer. (a) Agreed ( ) (b) Not Agreed ( )
5. Do you think performance appraisal is useful or just a waste of time? (a) Useful ( ) (b) waste of time ( )
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(a) Yes
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(b) No
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(b) 5-10
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(d) More than 15
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6. Proper and adequate performance appraisal plays a crucial role in your career development. (a)Agreed ( ) (b) Not Agreed ( )
7. Does performance appraisal report is helpful in identifying training & development need or it lay career development plan for you? (a) To a large extent (b) To some extent (c) Not at all
(a)Agreed (
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(b) Not Agreed (
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(a) Yes
Any suggestions:
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(b) No
(a) Yes
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(b) No
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